On August 14, 2019, HUD released the long-awaited final FHA condo rule. The new rules will benefit your real estate clients and customers by allowing more buyers to obtain low down-payment mortgages on affordable housing options.
After years of advocacy by REALTORS®, HUD's final rule contains several elements that will enable more buyers to be able to use FHA-insured financing to purchase a condo. During NAR’s annual legislative conference this May, FHA Commissioner Brian Montgomery noted the agency was closing in on finalizing new condo policies that, by lifting restrictions and streamlining processes, had the potential to significantly boost America’s condo sector. This ruling is another example of the tireless work the association, through RPAC, continues to do on behalf of REALTORS® and the clients you represent.
- The return of single unit approval, also know as spot loans, for units in non-FHA approved properties
- Increased certification period from two to three years, plus a six month grace period to submit re-certification materials
- Increased acceptable commercial space to 35 percent of total area
- Reduced requirement for owner-occupancy percentage exceptions
“Condominiums are often the most affordable option for first time home buyers, small families, and those in urban areas,” said NAR President John Smaby, in a statement issued to the media Wednesday morning. “We are thrilled that (HUD) Secretary (Ben) Carson has taken this much-needed step to put the American dream within reach for thousands of additional families.”
For a full breakdown of the changes, click here.